Satellogic Announces Additional Layoffs and Slows Satellite Deployment

Weeks after implementing a 13% workforce reduction, imaging company Satellogic has announced further layoffs and a slowdown in the deployment of its new satellites.

In a filing with the U.S. Securities and Exchange Commission (SEC) after markets closed on June 14, Satellogic revealed plans to lay off approximately 70 employees, constituting around 30% of its workforce. The company has not provided specifics about which positions or locations will be affected.

This announcement follows closely on the heels of another round of layoffs just three weeks prior, which saw 34 employees, or about 13% of the workforce at that time, being let go. With the latest cuts, Satellogic's employee count will drop to about 160, less than half its size at the beginning of last year.

In addition to workforce reductions, Satellogic is also decelerating the deployment of its “Mark V” imaging satellites. These satellites are capable of capturing imagery at a native resolution of 70 centimeters and feature onboard processing capabilities. According to the SEC filing, "The Company has recently been successful in deploying and operationalizing its new Mark V satellites. As a result of this successful deployment, the Company expects to reduce investment into its constellation growth initiatives at this time."

To date, Satellogic has launched seven Mark V satellites, with the most recent batch deployed via the SpaceX Transporter-10 rideshare mission in March. Initially, the company had plans to launch an additional three satellites on the Transporter-11 mission in July, as reported in May.

The primary motivation behind these layoffs and reduced satellite deployments is to conserve cash. Satellogic reported a net loss of $61 million in 2023 and concluded the year with $23.5 million in cash reserves. In April, the company raised $30 million from Tether Investments Ltd., a cryptocurrency company, in a bid to bolster its finances.

The financial challenges stem from revenues that have grown much slower than anticipated.

In 2023, Satellogic generated $10.1 million in revenue, a stark contrast to the $132 million projected in November 2021 when the company went public through a special purpose acquisition company (SPAC) merger.

In September, Satellogic had projected 2024 revenues between $38 million and $58 million. However, in April, the company retracted this guidance. The SPAC projections from November 2021 had forecasted $365 million in revenues for 2024.

“As we continue to evaluate all strategic options going forward, we are redoubling our efforts to put Satellogic on a path towards profitability...Now that our Mark V satellites are operational, we are reducing our constellation growth and corresponding capital expenditures, allowing us to make some necessary adjustments, including workforce reductions, to ensure we are operating efficiently and are well-positioned for future success.”- Emiliano Kargieman, Chief Executive of Satellogic

These measures reflect Satellogic's strategic pivot towards ensuring long-term sustainability and profitability amid a challenging financial landscape.